Visa's product seems very much focused on helping issuers try and keep cardholders within that issuer's ecosystem. Which makes sense given Visa's clients are the issuers. One interesting angle is how this shapes up competition. Cardholders may become used to being able to flex between different products, therefore it may be in an issuer's interest to offer a wider range of products both in terms of the baseline various debit and credit options, but other options too. For instance, if a transactions if over X amount then use credit, but if it's over a higher amount then use BNPL with debit, and another higher amount then use BNPL with credit (essentially BNPL with credit having the capability to push back the repayments by another 30 days). Or banks may be interested to parter with fintechs to build more interesting products into their existing stack. It could be an interesting case of compete and co-operate between banks and fintechs. One thing is for sure, the US payments market on the consumer side could be about to get even more competitive!
Before Coin, there was Wallaby, which I started in 2011 with intelligence to do specifically this kind of routing. I am an investor in Kudos because I believe it will be able to achieve some of those goals. The irony is that Visa's "innovation" team nixed our Wallaby idea because the network will never allow someone to ride over the top of the rails and choose between issuers–because issuers don't want that.
Great write up, Jareau. I understand that your were simply trying to show how rapidly Apple Pay has grown in transaction volume, but PayPal is making more per transaction than Apple Pay which is worth noting.
I love where they are headed with flexible credentials. Visa sits on another potential gold mine . Working with the retailers and CPG manufacturers they could use the level 3 data of the transaction logs to have the CPG automatically payback the customer to the card used for the transaction. I go to Krogers and use my Chase branded Visa card to buy diapers. My wallet could show me that if I buy Huggies, that Kimberly Clark (Huggies) will pay me $2 to my Chase account. If I returned the Huggies the $2 would be taken back via the same process. I was involved with 2 companies in the late 90's and early 2000's that had solutions similar to this but mobile phones, mobile wallets, high speed internet and 5G wireless weren't there so the solutions were ahead of the technology. Now is the time for Visa to push this as something their network could enable.
Visa's product seems very much focused on helping issuers try and keep cardholders within that issuer's ecosystem. Which makes sense given Visa's clients are the issuers. One interesting angle is how this shapes up competition. Cardholders may become used to being able to flex between different products, therefore it may be in an issuer's interest to offer a wider range of products both in terms of the baseline various debit and credit options, but other options too. For instance, if a transactions if over X amount then use credit, but if it's over a higher amount then use BNPL with debit, and another higher amount then use BNPL with credit (essentially BNPL with credit having the capability to push back the repayments by another 30 days). Or banks may be interested to parter with fintechs to build more interesting products into their existing stack. It could be an interesting case of compete and co-operate between banks and fintechs. One thing is for sure, the US payments market on the consumer side could be about to get even more competitive!
Before Coin, there was Wallaby, which I started in 2011 with intelligence to do specifically this kind of routing. I am an investor in Kudos because I believe it will be able to achieve some of those goals. The irony is that Visa's "innovation" team nixed our Wallaby idea because the network will never allow someone to ride over the top of the rails and choose between issuers–because issuers don't want that.
Interesting! Thanks for sharing Matthew.
Great write up, Jareau. I understand that your were simply trying to show how rapidly Apple Pay has grown in transaction volume, but PayPal is making more per transaction than Apple Pay which is worth noting.
I love where they are headed with flexible credentials. Visa sits on another potential gold mine . Working with the retailers and CPG manufacturers they could use the level 3 data of the transaction logs to have the CPG automatically payback the customer to the card used for the transaction. I go to Krogers and use my Chase branded Visa card to buy diapers. My wallet could show me that if I buy Huggies, that Kimberly Clark (Huggies) will pay me $2 to my Chase account. If I returned the Huggies the $2 would be taken back via the same process. I was involved with 2 companies in the late 90's and early 2000's that had solutions similar to this but mobile phones, mobile wallets, high speed internet and 5G wireless weren't there so the solutions were ahead of the technology. Now is the time for Visa to push this as something their network could enable.